NYSE:G, an undervalued stock with good fundamentals.

Last update: Jul 24, 2024

Discover GENPACT LTD (NYSE:G)—an undervalued stock our stock screener has picked out. NYSE:G demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:G has earned a 8 for valuation:

With a Price/Earnings ratio of 11.06, the valuation of G can be described as very reasonable.
Based on the Price/Earnings ratio, G is valued cheaper than 92.77% of the companies in the same industry.
G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.86.
The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of G.
91.57% of the companies in the same industry are more expensive than G, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of G to the average of the S&P500 Index (20.69), we can say G is valued rather cheaply.
83.13% of the companies in the same industry are more expensive than G, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of G indicates a rather cheap valuation: G is cheaper than 85.54% of the companies listed in the same industry.
The excellent profitability rating of G may justify a higher PE ratio.

Exploring NYSE:G's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:G has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 13.55%, G belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.94%, G belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
G's Return On Invested Capital of 13.50% is amongst the best of the industry. G outperforms 84.34% of its industry peers.
The 3 year average ROIC (11.94%) for G is below the current ROIC(13.50%), indicating increased profibility in the last year.
The Profit Margin of G (14.21%) is better than 92.77% of its industry peers.
G's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.18%, G belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
In the last couple of years the Operating Margin of G has grown nicely.

Health Examination for NYSE:G

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:G, the assigned 6 for health provides valuable insights:

An Altman-Z score of 3.38 indicates that G is not in any danger for bankruptcy at the moment.
G has a Altman-Z score of 3.38. This is in the better half of the industry: G outperforms 63.86% of its industry peers.
The Debt to FCF ratio of G is 3.05, which is a good value as it means it would take G, 3.05 years of fcf income to pay off all of its debts.
G has a Debt to FCF ratio of 3.05. This is in the better half of the industry: G outperforms 60.24% of its industry peers.
G has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.

Assessing Growth Metrics for NYSE:G

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:G, the assigned 4 reflects its growth potential:

G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.61% yearly.
Measured over the past years, G shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of G contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.